Nifty ends above 8,600; Tata Motors, RIL top leaders
Benchmark indices staged a recovery in late trades to end higher with Tata Motors leading the gains after brokerages remained bullish on the stock while weakness in IT shares capped further upside.
The S&P BSE Sensex ended up 120 points at 27,903 and the Nifty50 settled 35 points higher at 8,607. In the broader markets the BSE Midcap and Smallcap indices ended up 0.2%-0.3%.
"Traders should enter long only above 8750 Nifty50 levels for short term momentum gains. Investors are advised to stay away and traders should exit long if Nifty50 penetrates validly 8500 levels. Existing long positions should be trailed at 8500 Nifty 50 levels," said Jimeet Modi, CEO, SAMCO Securities.
In overseas stock markets, European and Asian stocks edged lower after Federal Reserve Chairwoman Janet Yellen on Friday signaled the possibility of an interest-rate increase later this year. High US interest rates would pull money out of emerging markets and redirect it to the US.
Japanese shares bucked a weak trend in Asian stocks on weaker yen. Japan's Nikkei 225 Average settled 2.3% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas.
Back home, Tata Motors moved higher to its 52-week high of Rs 523, up 4% on the BSE on expectations of continued robust volume growth going forward.
Shares of information technology (IT) companies are under pressure with Wipro, NIIT Technologies, Hexaware Technologies and Tata Elxsi, hitting their respective 52-week lows on the BSE.
Among other shares, V-Guard Industries moved higher by 4% ahead of stock split in the ratio of 10:1 on Tuesday, August 30, 2016.
Donear Industries surged 9%, extending its over 30% rally in the previous four sessions on the BSE, amid heavy volumes.
Delta Corp continued its upward march, with the stock hitting a record high of Rs 159, up 8% on the BSE in intra-day trade.
Shree Renuka Sugars gained 6% after the Assembly of Creditors of Renuka do Brasil S/A (RdB) approved the Reorganization Plan presented by Renuka do Brasil S/A on August 26, 2016.
Shares of tyre manufacturers were trading higher after natural rubber prices hit nearly three-month low. Balkrishna Industries, JK Tyre & Industries, Apollo Tyres, Ceat, MRF, Goodyear India and TVS Srichakra rallied by up to 8% on the BSE in intra-day trade.